The External and Internal

Marketing Environment
• Learning objectives:
• Evaluate the external and internal
marketing environment through detailed
analysis using marketing audit tools and
techniques
 Situation analysis
• Analyzing the present situation of the
organization in relation to its served markets is
necessary preliminary to assessing strategic
approaches and formulating proposals for
strategic action.
• Typically, this phase will require attention to the
following factors:
• Markets
– Size and value
– Rate of growth or decline
– Importance in total and per segment
– significant trends in customer behaviour/attitudes
 Situation analysis
• Products
– Range
– Pricing history
– Sales trends
– Contribution
– Profitability
• Competitors
– Numbers
– Size and profile
– Market share
– Product range: how competitive?
– Quality control
– Marketing strategies
 Situation analysis
• Distribution
– Use of channels
– Trends in channel use
– Changes in e.g. pricing, terms, regions
• Environment - PESTEL
– Main trends in the markets
– Political
– Economic
– Social/Cultural
– Technological
– Environmental
– Legal
 Summary PESTEL Analysis
• Political
– Taxation
– Stability of governments
– Protection of domestic markets from overseas companies
– Foreign trade agreements
– Environmental issues
– Monopoly controls
• Economic
– Interest rates
– Inflation rates
– Economic cycle
– Unemployment
– Consumer confidence
 Summary PESTEL Analysis
• Social
– Attitudes and values
– Culture
– Age profiles
– Social mobility
– Incomes
– Buying habits
• Technology
– Rate of development of new technology
– Open/closing of distribution channels
 Summary PESTEL Analysis
• Environmental
– Green issues
– Corporate Social Responsibility (CSR)
– Use of resources
– Pollution
– Climate change
• Legal
– Restrictive practices
– Competition
– Safety
– honesty